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Global Investing Warms to Ireland

GLOBAL INVESTING, a newsletter that has gained a following for its outspoken opinions and stock picks, is an independent publication again after a brief hiatus. It was purchased by Worldly Information Network Inc. last November, which shortly thereafter decided to exit the newsletter business.

Vivian Lewis, who had remained Global Investing's editor in chief, has now reclaimed the publisher's job as well. Ms. Lewis's penchant for overlooked but promising companies and situations remains unchanged.

"My current hot idea is Ireland," she said.

The reason: Irish stocks will benefit from revisions in the Morgan Stanley Capital Europe Far East Australia Africa Index, the benchmark followed by many international stock mutual funds.

Over the next 14 months, calculation of MSCI will change from market capitalization to market accessibility, eliminating the effects of large stakes held by governments and other investors unlikely to sell their holdings in the companies that constitute the index.

She also recommended Allied Irish Bank PLC, which had a "terrific 2000," she said. Profit before taxes rose 10.5 percent, with 44 percent coming from Ireland, where the economy has been booming. The bank has substantial interests in Britain and the United States, as well as a very profitable unit in Poland.

The stock, currently trading at 15 times trailing earnings, is not expensive, she said. "Also there's a lot of consolidation going on, and there is no reason why it should not be a target."

Another favorite is Hibernia Foods PLC, which has the European franchise for Entenmann's, an American bakery whose products range from blueberry muffins to chocolate-frosted doughnuts.

Investors offended by packaged desserts "do not have to buy a cake, just buy the stock," Ms. Lewis said, adding that one of Hibernia's biggest customers is Tesco PLC, the British supermarket chain that is expanding in Europe.

Hibernia has been acquiring dessert companies since deciding in 1996 that its original business of exporting Irish meat was threatened by the outbreak of bovine spongiform encephalopathy, or mad cow disease. The company is no longer in the beef business, but it does claim to dominate the British market for frozen pork meatball products with the 100-year-old Mr. Brain's brand, which, with Entenmann's was purchased from Bestfoods U.K. Ltd. before its U.S. parent was bought by Unilever NV.

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ALLIED IRISH BANK trades in London and Dublin under the ticker symbol ALBK and in Berlin as AIB. Its American depositary receipts, which represent two common shares, are listed in New York as AIB. Web site: www.aib.ie